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Availability
of qualified and affordable manpower, positive businessenvironmentamong others has helped India to
maintain its status as forerunner in the global IT-BPO industry, but faces a
growing challenge from Philippines, a report by Cushman & Wakefield said.

"Globally
India continues to be the forerunner in the IT- BPO industry. However, a number
of other South and South-east Asian countries are increasingly gaining share in
the global IT-BPO Industry," the report said.

India customer service call center outperforms its counterparts, Philippines, China, Malaysia and other South
Asian countries in IT-BPO industry due to availability of English speaking and
qualified talent, higher cost arbitrage, rapidly growing domestic market,
stable political system, positive business environment that fostersFDIin the sector among others, it added.

India's
advantage also lies in its strong domestic demand, the geographical diversity
and the growth potential in Tier II and Tier III cities, the report said.

However,
it said Philippines is emerging as a strong competitor.

"While
India and Indian call center is at the forefront in the IT industry, Philippines is emerging as
India's competitor in voice-based operations. The major growth of voice-based
operations in the country is primarily because of the educated and
English-speaking talent pool," it added.

Although
it seems to be an attractive destination due to cheaper availability of talent
and government support, there are concerns with the market especially with
regards to the higher level managerial positions and capability in software
development, it said.

China's
capabilities in the low cost manufacturing and research are helping the growth
of its IT industry apart from its increasing foothold in the BPO and data
centre segments, the report said, adding that language constraints pose a
challenge to the country's plans to make it big in global 24 x 7 Service Call Center BPO services.

Malaysia, Indonesia andVietnamhave
been successful in attracting IT/ITeS activities to their nations, it added.